- (1.) Delay condoned.
(2.) Special leave granted.
(3.) We have heard counsel for the parties. The respondent assessee entered into a contract with the Government for executing certain works. A dispute arose between the assessee and the Government which was referred to arbitration. The arbitrator awarded certain amount by way of compensation for the work done and also awarded interest. A question arose in the assessment proceedings, whether the interest awarded is income and is liable to be included in his assessment. The Income Tax Officer treated the same as income and included it after deducting the expenses. The appeal preferred by the assessee was allowed holding that interest is not income. An appeal preferred by the Revenue was dismissed by the Tribunal. On reference, the orissa High Court answered the following question in favour of the assessee, following its earlier decision in Govinda Choudhury and Sons v. CIT: "whether on the facts and in the circumstances of the case, interest awarded by an arbitrator is income to be assessed to tax under the Act -;